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Coalition Agreement

So, we finally have full details of the Tory Democrat deal on welfare reform.  As David Freud is still very much in the driving seat there aren't too many surprises.  In fact it is pretty much the Tory manifesto in a different colour!  There is no detail other than what we already know.  Hopefully DWP will shed more light on this in the coming weeks.

Below is an extract from the Coalition Programme for Government released today:

The Government believes that we need to encourage responsibility and fairness in the welfare system. That means providing help for those who cannot work, training and targeted support for those looking for work, but sanctions for those who turn down reasonable offers of work or training.
 

  • We will end all existing welfare to work programmes and create a single welfare to work programme to help all unemployed people get back into work.  
  • We will ensure that Jobseeker’s Allowance claimants facing the most significant barriers to work are referred to the new welfare to work programme immediately, not after 12 months as is currently the case. We will ensure that Jobseeker’s Allowance claimants aged under 25 are referred to the programme after a maximum of six months.
  • We will realign contracts with welfare to work service providers to reflect more closely the results they achieve in getting people back into work.
  • We will reform the funding mechanism used by government to finance welfare to work programmes to reflect the fact that initial investment delivers later savings through lower benefit expenditure, including creating an integrated work programme with outcome funding based upon the DEL/AME switch.
  • We will ensure that receipt of benefits for those able to work is conditional on their willingness to work.
  • We support the National Minimum Wage because of the protection it gives low-income workers and the incentives to work it provides.
  • We will re-assess all current claimants of Incapacity Benefit for their readiness to work. Those assessed as fully capable for work will be moved onto Jobseeker’s Allowance.
  • We will support would-be entrepreneurs through a new programme – Work for Yourself – which will give the unemployed access to business mentors and start-up loans.
  • We will draw on a range of Service Academies to offer pre-employment training and work placements for unemployed people.
  • We will develop local Work Clubs – places where unemployed people can gather to exchange skills, find opportunities, make contacts and provide mutual support.
  • We will investigate how to simplify the benefit system in order to improve incentives to work.

 So we're still no closer to a real answer as to the future of welfare to work.  

Download the full programme for government by clicking here.

 


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